British manufacturers reported a mixed September, with input‑cost pressures climbing for the first time in four months even as output growth slowed to its weakest level since March, according to the latest S&P Global Purchasing Managers’ Index (PMI) data.
Cost pressures rebound
The survey revealed the broadest increase in input costs since June, signaling that the recent lull in inflationary pressure has ended. Rob Dobson, director at S&P Global Market Intelligence, noted, “The big shift in September was in the survey’s price measures, which switched from signalling a decline in inflationary pressures to a renewed uplift.”
Production growth eases
While the headline PMI edged up to 51.9 from 51.7 in August, the output gauge slipped to 51.5 from 52.1, marking the second consecutive monthly slowdown. The index still indicates expansion – any reading above 50 denotes growth – but the pace is clearly moderating.
Employment remains strong
Employment continued its upward trend for the sixth month in a row, driven by stronger new orders and a desire among firms to clear backlogs. However, hiring momentum softened compared with August’s two‑year high, suggesting firms are becoming more cautious.
Bank of England outlook
Investors are now betting on a November interest‑rate increase by the Bank of England, following warnings from Governor Andrew Bailey and other senior officials that the recent energy price spike linked to the Iran conflict could reignite broader inflation.
Business confidence and future outlook
Business confidence remains below the six‑month high recorded in August, reflecting lingering concerns over geopolitical tensions, the domestic policy environment, and the potential impact of higher energy costs.
The PMI data were compiled from responses received between September 10 and September 25, providing a timely snapshot of the UK manufacturing sector’s health as it navigates cost pressures and a shifting macro‑economic backdrop.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
